German Efromovich, the chief executive of Synergy Group which owns Avianca, said the company also plans to buy another 35 airplanes with an additional investment ranging from $1.2 billion to $1.5 billion.

The 10 Boeing Dreamliners will replace Boeing 757 and 767 airplanes, Avianca said in a press release.

"Avianca will be the first company in South America to operate Boeing 787s in 2010," it said. Avianca will operate seven of the 10 airplanes while the three remaining will be operated by Synergy Aerospace.

Nicolaas Groeneveld-Meijer, a spokesman for Boeing Co.
BA, +0.71%
said that Avianca has acquired the purchase rights for the planes at a time to be determined in the future.

Efromovich said Avianca is negotiating with both Boeing and France-based Airbus to buy the 35 additional airplanes.

He said that Avianca is in talks with Airbus to buy an indeterminate number of jets to replace 17 old McDonald Douglas MD-83s.

"Negotiations are very advanced but they haven't concluded," Efromovich said.

Avianca will finance the purchase of the Boeing planes partly with cash but mainly with commercial bank loans and multilateral loans.

"International commercial banks have approached us and we are also evaluating proposals from the World Bank and the Inter-American Development Bank," said Efromovich.

John Wojick, vice president of sales for Latin America and the Caribbean for Boeing commercial airplanes, said as of now 38 customers have ordered 490 787 jetliners worth $75 billion at list price.

Brazilian company Synergy Group pulled Avianca out of U.S. bankruptcy protection in 2004 and took a 75% stake after agreeing to inject $63 million of fresh capital and assuming nearly $220 million of debt. Synergy then bought the remaining 25% of Avianca in November 2005.

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